(Adds details, market reaction, quote)
NEW YORK, May 29 (Reuters) - U.S. single-family home prices edged higher in March, the second month in row of gains, adding to signs the housing market is stabilizing, a closely watched survey said on Tuesday.
The S&P/Case Shiller composite index of 20 metropolitan areas gained 0.1 percent in March on a seasonally adjusted basis, falling shy of economists' forecasts for a gain of 0.2 percent.
On an unadjusted basis, the index was unchanged.
Prices in the 20 cities fell 2.6 percent from a year ago, an improvement from the 3.5 percent yearly decline seen last month.
U.S. stock index futures remained higher immediately following the data, while Treasuries prices held on to gains.
Still, it was too early to say housing prices have turned, despite the improvement in some regions, David Blitzer, chairman of the index committee at S&P Indexes, said in a statement.
The major house price indexes ended the first quarter at new post-financial crisis lows, the report said. For the first quarter, prices were down 2 percent, compared to a 3.9 percent decline in the last three months of 2011.
The housing market has been a thorn in the side of the broader economic recovery, but the sector has been gaining traction with new construction and sales rising in April.
"In my mind there is no question that housing has bottomed, in terms of home sales, home construction and home prices, but the recovery is still going to be very modest or very sluggish," said Mark Vitner, senior economist at Wells Fargo Securities in Charlotte, North Carolina.
Compared to a year ago, seven of the 20 cities saw price increases, including Detroit and Phoenix.
"This is what we need for a sustained recovery; monthly increases coupled with improving annual rates of change," said Blitzer.
"Once we see this on a broader level we will be able to say the market has turned around." (Reporting by Leah Schnurr, additional reporting by Chris Reese; Editing by Padraic Cassidy)
Support HuffPost
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
At HuffPost, we believe that everyone needs high-quality journalism, but we understand that not everyone can afford to pay for expensive news subscriptions. That is why we are committed to providing deeply reported, carefully fact-checked news that is freely accessible to everyone.
Whether you come to HuffPost for updates on the 2024 presidential race, hard-hitting investigations into critical issues facing our country today, or trending stories that make you laugh, we appreciate you. The truth is, news costs money to produce, and we are proud that we have never put our stories behind an expensive paywall.
Would you join us to help keep our stories free for all? Your contribution of as little as $2 will go a long way.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you’ll consider contributing to HuffPost once more.
Already contributed? Log in to hide these messages.
